Stephen Ukandu, Umuahia
The Senate has approved President Bola Ahmed Tinubu’s request to secure external loans totalling $6 billion, acting within three and a half hours of receiving the proposal.
The approval followed the presentation and adoption of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko (APC, Sokoto North).
The President’s request was conveyed in two separate letters addressed to Senate President Godswill Akpabio and read during Tuesday’s plenary.
In the first letter, Tinubu sought approval to establish a structured Total Return Swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank, UAE. He explained that the facility would be disbursed in tranches.
According to the President, the funds will support budget implementation, finance priority infrastructure projects, and refinance costly domestic and external debts, while also helping the government meet urgent financial obligations.
Tinubu put Nigeria’s total public debt at $110.3 billion (about N159.2 trillion) as of December 31, 2025, noting that the phased drawdown would ease pressure on debt servicing.
In a second letter, the President requested approval for the issuance of naira-denominated Federal Government securities as collateral for the facility, as well as the settlement of margin obligations in US dollars.
He also sought approval for a separate $1 billion UK Export Finance facility, arranged by Citibank London, for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
